The International Monetary Fund has warned of a looming global recession as the global economic outlook continues to worsen.
Still reeling from the Covid-19 pandemic and Russia’s invasion of Ukraine, the global economy is facing an increasingly murky and uncertain outlook.
The World Economic Outlook Update 2022 titled: “Gloomy and More Uncertain” highlights the significant consequences of the stalling of the world’s three main economic powerhouses – the United States, China and the major European economies.
Pierre-Olivier Gourinchas, IMF Economic Counsellor and Director of Research says the outlook has darkened significantly since April.
He warns that the world may soon be teetering on the edge of a global recession, only two years after the last one”.
The baseline forecast for global growth is for it to slow from 6.1 per cent last year, to 3.2 per cent in 2022 – 0.4 per cent lower than forecast in the last Outlook update in April.
Despite the global slowdown, inflation has been revised up, in part due to rising food and energy prices.
